accident attorney Insurance Claims and Coverage 1

Question 1

What does liability insurance cover in an auto accident?

Accepted Answer

Damages the policyholder causes to others, including bodily injury and property damage

Answer

Liability insurance pays for injuries and property damage the insured driver causes to third parties in an accident.

Question 2

What is uninsured motorist (UM) coverage?

Accepted Answer

Coverage protecting the insured when injured by a driver who has no liability insurance

Answer

UM coverage allows the insured to recover compensation from their own insurer when the at-fault driver carries no insurance.

Question 3

What is underinsured motorist (UIM) coverage?

Accepted Answer

Coverage that pays the difference when the at-fault driver's insurance is insufficient to cover all damages

Answer

UIM coverage fills the gap when the responsible driver's policy limits are lower than the injured party's actual damages.

Question 4

What is a policy limit and why does it matter in accident settlements?

Accepted Answer

The maximum amount an insurer will pay under a policy, which caps potential recovery from that insurer

Answer

Policy limits cap the insurer's financial obligation, so damages exceeding the limit must be sought from the defendant personally or through other coverage.

Question 5

What is a bad faith insurance claim?

Accepted Answer

A claim that an insurer unreasonably denied, delayed, or undervalued a valid insurance claim

Answer

Bad faith arises when an insurer fails to fulfill its obligation to handle claims fairly, potentially exposing it to extra-contractual damages.

accident attorney Practice Test

accident attorney Practice Test

accident attorney Insurance Claims and Coverage 1